Oil price gains 2%, kiwi tumbles

2023-05-25
Summary:

World stocks dropped on Wednesday as U.S. debt ceiling talks dragged on without resolution, stoking a general malaise in markets that saw the dollar hold around recent highs, dragging gold lower.

World stocks dropped on Wednesday as U.S. debt ceiling talks dragged on without resolution, stoking a general malaise in markets that saw the dollar hold around recent highs, dragging gold lower.


Europe's benchmark STOXX index fell 1.8% to a 1-1/2-month low as luxury stocks fell 1.7% to a seven-week low as a sell-off in the sector continued.


But Crude Oil prices bucked the downtrend and kept rising, after a warning from the Saudi energy minister to speculators that raised the prospect of further OPEC+ output cuts.


Commodities

Oil prices rose 2% after the EIA said U.S. crude inventories posted a massive surprise weekly drawdown of 12.5 million barrels to 455.2 million barrels, the EIA said. Analysts had expected an 800,000-barrel rise.


The U.S. Memorial Day holiday on May 29 marks the beginning of the peak summer travel season and higher fuel demand.


Meanwhile, Saudi Arabia's energy minister said short-sellers betting oil prices will fall should "watch out" for pain.


Forex

The dollar hit a fresh two-month high against a basket of peers, bolstered by recent signs of a resilient U.S. economy and debt ceiling jitters.


The New Zealand dollar dropped 2.3% after the Reserve Bank wrong-footed markets by keeping its forecast for the terminal rate at 5.5%, having hiked by a quarter point to that level.

NZDUSD

The pound dropped to a five-week low against the dollar of $1.2358, after data showed British inflation slowed by much less than markets had been expecting.


Higher inflation, leading to higher-for-longer Bank of England rates, had supported the pound in recent months but that relationship is now starting to reverse.

Gold and silver buoyant despite recent retreat

Gold and silver buoyant despite recent retreat

Gold and silver prices fell Thursday amid inflation concerns. Despite recent declines, analysts foresee their strengthening in the coming year.

2024-05-30
UK Stock Market at High Stake on Wednesday

UK Stock Market at High Stake on Wednesday

The FTSE 100 Index tumbled Tuesday as bids for two major companies neared a deadline. Foreign investors are snapping up discounted stocks.

2024-05-29
Investors Increasingly Bullish on US Equities Before Holiday

Investors Increasingly Bullish on US Equities Before Holiday

Asian stocks are flat Tuesday, awaiting global inflation data. Wall Street closed for Memorial Day. Investors are buying on cooling inflation signs.

2024-05-28